Jan011609:49 Scott Shafor 1 (816) 632-4712 p2 MARYLAND AT HtLET I ‘Scott Shafer Re: Memorandum of Understanding Offer Assistant Football Coach/Defensive Coordinator — University of Maryland ‘Dear Coach Shafer: tis with great pleasure that I offer you the position of Assistant Football Coach/Defensive Coordinator for the University of Maryland, effective December 8, 2015. This Memorandum of Understanding (MOU), which presents the material terms of our offer, will be incorporated into a forroal employment contract with the University of Maryland for execution at the earliest possible date, Such a formal employment contract shail be subject to prior review per Policy ‘VII-10.0 of the Board of Regents for the University System of Maryland. Your acceptance of ‘his offer will constitute a binding agreement between you and the University. ‘The employment contract will be for a term of three years beginning December 8, 2015 through December 31, 2018. ‘Your compensation as Assistant Football Coach will be the followin ‘+ Annual guaranteed compensation (base salary and supplemental income) © Year -$400,000 annual base salary and $100,000 annual supplemental income (to be paid in quarterly installments of $25,000) totating $500,000 (annualized) © Year 2- $400,000 annual base salary and $600,000 annual supplemental income (to be paid in quarterly instaliments of $150,000) totaling $1,000,000 (annualized) ‘© Year 3 -$400,000 annual base salary and $350,000 annual supplemental income (o be paid in quarterly installments of $87,500) totaling $750,000 (annualized) © Subject to any applicable provision of law or University System of Maryland Board of Regents’ policy, an annual increase in Annual Base Salary to be effective in each fiscal year following the first calendar year of this 2015 ‘Agreement. ‘This increase will be comprised of a cost-of-living increase when authorized by the State of Maryland for exempt employees of the University and in an amount no Jess than the authorized amount; and @ merit pay increase in an amount to be determined by the Athietic Director. © For purposes of this MOU, the parties acknowledge that Year | of your ‘employment will encompass more than a 365 day calendar year, and the University agrees that you shall be entitled to receive a pro-rata portion of your {otal annual compensation for that period that exceeds 365 days ‘+ Incentive compensation for achieving athletic performance goals as follows (Maximum payout $65,000): ; © BIGTEN Championship Game - Non-cumulative with a maximum attainable of $20,000: 'van011609:49p Scott Shafer orgoszart2 ps MARYLAND Ane een * Participate: $10,000. * Wins $20,000. 6 Bowl Participation - Non-cumulative with a maximum nee of $25,000: Non-CFP Bowl Participant: $10,000. i CFP Bow! Participant: $15,000. 1 CFP Bow! Championship Participant: $25,000. { i © Bowl Outcomes - Non-cumnulative with a maximum attainpble of $20,000: ‘Win Non-CFP Bowl: $5,000, Win CEP Bowl: $15,000. ‘Win CFP Championship $20,000. * Tickets ‘©. Six (6) regular season tickets for each University home vaisity football game; © Six(6) regular season tickets for each University away vajsity football game; © Foor (4) regular season tickets for each University men’s home varsity basketball game; © Four (4) regular season tickets for each University wonter!’s home varsity basketball; © Six(6) tickets to each post-season University varsity football competition, ‘© Full standard benefits on the same terms as provided by the University to all professional employees, with contributions and benefit amount based upon thy base salary where relevant and permitted by Maryland and federal jaw. © Reimbursement for your houschold moving expenses up to $17,000 and 30 hotel room nights in accordance with University policy and state law. + Monthly ear allowance of $500. i Among other terms, your employment contract will include the following: ‘© You shall be prohibited from receiving benefifs or compensation|other than as described above from any other source without prior wr}tten agreement, © Hfyou terminate the contract, or if the contrac} is terminat for fause, the University shall not be liable for any payments or benefifs after the ination. ‘+ Hyou are found to have committed a major violation. neha les and regulations, or if the footbal) program is found to have comrpitted a major violajion of NCAA rules and regulations for which you are culpable, whetller while employed]by the University orJan 011609:50p ——‘Soolt Shafer 1 (315)632-4712 pd MARYLAN AT HEE T during prior employment at another NCAA member institution, you shall be subject to disciplinary or corrective action as set forth in the NCAA enforcerpent procedure, including termination of employment for cause. ‘+ Aprovision that permits the University to terminate the contract without cause in consideration of the University continuing to pay your annual base salary, payable in equal installments at the end of each University pay period for the remaining portion of the term of this Agreement, as if you were still employed for the remaining portion of the term ending on December 31, 2088. You will have a duty to mitigate such payments if ‘you obtain new athletically related employment, any income you eam prior to December 31, 2018 (which must be reported to the University) will reduce the University's obligation dotiar for dollar. + A provision that you will agree not to seek or apply for other positions without prior notice. ‘* Hfyou terminate the contract in (year 1 December 2015 ~ December 31, 2017), you will be responsible to pay the University half of your ensual base salary, if you terminate the contract after January J, 2018 yon will be responsible to pay the University 25% of your annual base salary. ‘While these terms are contingent upon our executing an employment contract, we trust that every reasonable effort will be made to mutually conchide that process within 60 calendar days of your start date, However, this Memorandum of Understanding will contiaue to serve as the contract if a formal contract is not signed within 60 calendar days. ‘We make this employment offer to you with great anticipation and enthusiasm. Please indicate ‘your aceeptance of this offer by signing and returning a copy of this MOU. We have every confidence that you will lead our football program with integrity and pride, We look forward to welcoming you as a member of the Terrapin family. Kevin B. Anderson Director of Athletics ‘University of Maryland Coach